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NetEase Stock Drops After Diablo Immortal’s Release Delay

Shares of the famous gaming giant NetEase plunged 7% after the delay in the launch of the Diablo Immortal game in China

NetEase shares fell 7% in Hong Kong after revelations of plans to delay the launch of the Diablo Immortal game in China, where the Chinese game company stated that it will postpone the date of the game’s unveiling on June 23 for the upcoming game, but it did not give a new date for its launch.

Note that Dialobo Immortal, which has a mobile version and a PC version, was jointly developed by the two giants NetEase and Activision Blizzard, which Microsoft plans to acquire. Read More [Activision Blizzard Fails to Reach Its 1Q Expectations].

The delay is due to the development team making some tweaks, including performance improvements and increased game support to a wider range of devices and networks, but NetEase and Blizzard’s move comes at a sensitive time for the Chinese game industry, which has just emerged from a months-long stagnation due to a regulatory freeze. for approvals. Read more [Chinese Video Game Companies Rose After Regulatory Approvals].

The gaming industry has faced an intense scrutiny as part of broader regulatory tightening in the Chinese tech market. Read more [Covid and Regulatory Scrutiny are Destroying Tencent] and [China’s Censorship Crackdown Reaches Video Games].

The official account of the Diablo Immortal game was banned from publishing on the Chinese Weibo platform – which is considered as Twitter – under the pretext of “violating laws and regulations”, and it was not clarified which laws the account actually penetrated, and NetEase declined to comment further on the news of the game’s delay and Activision Blizzard did not provide No comments directly when contacted.

Diablo is one of the most popular Blizzard games and China represents the largest game market in the world, and the delay will of course affect NetEase, which saw slower revenue growth during the first quarter of the year.

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